Fund v. New York State Department of Taxation

Proceeding pursuant to CPLR article 78 (transferred to this court by order of the Supreme Court at Special Term, entered in Albany County) to review a determination of the State Tax Commission which sustained a personal income tax assessment imposed under Tax Law article 22.

In 1969, the Internal Revenue Service (IRS) audited petitioners’ Federal income tax returns for the years 1965 and 1966. An assessment of additional tax was made based upon the determination that petitioners had incorrectly reported certain ordinary income as capital gains. The amount due was subsequently recomputed and,…